Correlation Between ANT and Innovator ETFs
Can any of the company-specific risk be diversified away by investing in both ANT and Innovator ETFs at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ANT and Innovator ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Innovator ETFs Trust, you can compare the effects of market volatilities on ANT and Innovator ETFs and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ANT with a short position of Innovator ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Innovator ETFs.
Diversification Opportunities for ANT and Innovator ETFs
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANT and Innovator is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Innovator ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator ETFs Trust and ANT is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ANT are associated (or correlated) with Innovator ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator ETFs Trust has no effect on the direction of ANT i.e., ANT and Innovator ETFs go up and down completely randomly.
Pair Corralation between ANT and Innovator ETFs
Assuming the 90 days trading horizon ANT is expected to generate 54.51 times more return on investment than Innovator ETFs. However, ANT is 54.51 times more volatile than Innovator ETFs Trust. It trades about 0.05 of its potential returns per unit of risk. Innovator ETFs Trust is currently generating about -0.02 per unit of risk. If you would invest 640.00 in ANT on November 2, 2024 and sell it today you would lose (493.00) from holding ANT or give up 77.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
ANT vs. Innovator ETFs Trust
Performance |
| Timeline |
| ANT |
| Innovator ETFs Trust |
ANT and Innovator ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Innovator ETFs
The main advantage of trading using opposite ANT and Innovator ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Innovator ETFs can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Innovator ETFs will offset losses from the drop in Innovator ETFs' long position.The idea behind ANT and Innovator ETFs Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Innovator ETFs vs. Innovator ETFs Trust | Innovator ETFs vs. Innovator MSCI Emerging | Innovator ETFs vs. Innovator Russell 2000 | Innovator ETFs vs. Innovator MSCI Emerging |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |